Rhea is traveling internationally, selling her company's computer software. While she is in Ireland, she makes a deposit of $10,000 in a bank there. What short-term investment does this scenario describe?

Question

Quizplus · Accepted Answer

This scenario describes eurodollar deposits. Some companies invest idle cash in international markets such as the eurodollar market, a market for trading U.S. dollars in foreign countries. Because the eurodollar market was originally developed by London banks, any dollar-denominated deposit in a non-U.S. bank is called a eurodollar deposit, regardless of whether the issuing bank is actually located in Europe, South America, or anyplace else.

Rhea Is Traveling Internationally, Selling Her Company's Computer Software